Charter Communications: The Valuation Is Extremely Low But Not Without Reason

Charter Communications trades at an extremely low valuation, reflecting concerns over declining internet subscribers and pressured EBITDA. Despite falling revenue and internet losses, Spectrum Mobile and rural expansion are driving growth, while capex is set to decrease sharply from 2027. Buybacks have boosted EPS, but with $94 billion in debt, leverage amplifies both upside and downside; aggressive buybacks raise risk. I rate CHTR a Buy at $124, targeting $220 per share if internet losses stabilize and capex savings materialize, but risk remains high.

Charter Communications ( CHTR ) appears extremely cheap at first glance. At a share price of $124, investors are paying less than 3 times the forward earnings for 2027 . That is a valuation